October 24 (SeeNews) - The Croatian Bank for Reconstruction and Development (HBOR) said it signed on Tuesday a financing agreement with local Erste & Steiermaerkische Bank (ESB), Privredna Banka Zagreb (PBZ) and Zagrebacka Banka (ZABA) to implement a 200 million euro ($235.2 million) financial instrument - ESIF Loans for Growth and Development - intended for local businesses.
Under the instrument, 50% of the loans will be funded from European Structural and Investment Funds (ESIF) and granted at an interest rate of 0%, while the remaining 50% will come from the three signatory commercial banks at market interest rates, HBOR said in a statement.
The loans are available to small and medium-sized enterprises (SMEs), which have been operating for at least two years, and can be invested in manufacturing, tourism, the creative industry and knowledge-based services.
They will be provided for up to 12 years with a two-year grace period, or up to 17 years with a four-year grace period, to companies in the tourism industry.
The smallest possible loan is 100,000 million euro, while the ceiling is 3 million euro, or 10 million euro for companies in tourism.
In December last year, HBOR and Croatia's EU funds ministry signed a deal to implement the ESIF instrument. At the time it was estimated that 200 SMEs will receive support through this programme, which will result in the creation of 800 new jobs.
($=0.8503 euro)